Finding Text
2025-005: Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: 252IL058N1099-2024, 252IL058N1199-2024, 252IL058N1099-2025, 252IL058N1199-2025 Pass-Through Agency: Illinois State Board of Education Pass-Through Number(s): 25-4210-00, 25-4220-00, 24-4210-00, 24-4220-00 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal Laws, regulations and program compliance requirements. Effective internal controls should include verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Condition: The District did not retain documentation verifying that vendors were not suspended or debarred prior to entering into the transactions. Questioned Costs: None Context: 2 of 3 vendors tested did not have supporting documentation retained. Cause: The District lacks an effective internal control system to verify and document suspension and debarment status of vendors prior to contract execution. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: No Recommendation: We recommend the District review federal procurement requirements and implement procedures to ensure proper documentation of suspension and debarment checks of vendors, prior to contracts and purchases over the covered transaction threshold. The District should consider using a federal procurement checklist to support compliance. Views of Responsible Officials: There is no disagreement with the audit finding.